PHILADELPHIA (Nov. 15, 2006) — Pep Boys—Manny, Moe & Jack made modest gains in the third quarter as sales rose 0.9 percent to $550.8 million and the net loss improved to $7.72 million from an $11.4 million loss a year ago.
Pep Boys' comparable sales rose 0.8 percent in the quarter, including a 0.2-percent comparable merchandise sales increase and a 3.9-percent comparable service revenue increase. Recategorized, the comparables for retail sales (do-it-yourself and commercial) fell 1.8 percent and service center revenue (labor plus installed merchandise and tires) rose 4.8 percent.
For the nine months ending Oct. 28, Pep Boys' sales were essentially flat at $1.69 billion. Comparable retail sales fell 1.7 percent and comparable service center revenue increased 2.9 percent.
For the period, the net loss also improved to $7.12 million from a loss of $12.9 million a year ago.
“While the external operating environment continued to be difficult this quarter, we have started to make progress in our operating results,” said William Leonard, interim CEO of the automotive service chain. “Notably, we posted positive comparable store sales in our service center operations and made continued progress on our retail margins. Also, we have been making continuing efforts to reduce our cost structure to help improve overall results. We expect to build momentum on these initiatives into the final quarter of the year and through next year.”
Pep Boys operates 593 stores in 36 states and Puerto Rico.